So Obama came into office and Zollick, the World Bank President is questioning whether or not to keep it as a reserve currency.
So we are in a dangerous position here. We are in a weakened position; China can easily impose financial warfare against us if they wish at this point. Shall we look at how they're dealing with questionable oil trades?
Just this September, China has threatened a derivative default.
BEIJING, Sept 29 (Reuters) - A group of Chinese state firms, with the backing from the state assets watchdog, have launched a contract war against their foreign banks, threatening not to pay out loss-making derivatives deals they claim were unfair.
Arguing that they were mis-sold risky and unnecessary oil options, China State-owned Assets Supervision and Administration (SASAC) this month took the unprecedented step of warning banks that state corporations could default or sue, appearing to give Beijing's seal of approval to tearing up derivative deals worth an estimated several billion dollars to the banks.
But as I mentioned before, China buys US Treasuries to keep the US Dollar propped above the Yuan in order to keep the their exports cheap. Ron Kirk has been fabulous in addressing the WTO diplomatically about China's trade war against the U.S. Although they grossly understate the trade surplus given to them by the U.S.
Defaulting on our debt to China isn't going to be pretty.
So how does Obama "fix the problem?" By spending more and...
"President Barack Obama has increased U.S. marketable debt to a record as he borrows to reignite growth in the world’s biggest economy. That’s boosted speculation increased money supply will debase the currency and spur inflation."
So what is "record"?
On October 8th, 2009,
"President Barack Obama increased the nation’s marketable debt to an unprecedented $7.1 trillion as the government borrows to revive growth. Goldman Sachs Group Inc. predicts the U.S. will sell about $2.9 trillion of debt in the two years ending next September."
Don't worry. Asia stepped in to save the day, or China's hide.
"Asian central banks jumped in to prop up the dollar on Thursday as it slumped to a 14-month low against leading currencies."
Now Bernanke begins his case for the US Dollar, claiming that a world reserve currency will weaken the US Dollar.
Now wait a second!!!
On June 3rd, 2009,
"Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. dollar did not face a near-term risk of losing its reserve currency status and that ensuring a strong U.S. economy was the best way to keep the dollar strong."
Asia has officially done more than Bernanke and the Obama Administration combined to keep the US Dollar afloat.
So what are the other problems with a weakened dollar? Inflation? What about increased oil prices? OPEC will push for a world reserve currency that they can price oil in, or they can price oil in Euros or even Yen if they please.
But then again, Obama's keeping the oil production to foreign sources, not local ones. Ask Brazil.
Now remember, Soros bought Obama's presidency. He profitted from the crash of the British Pound and the Thai currency-the bhat.
He paid off 527's through the Democracy Alliance since 2004 and profitted from Halliburton only because he knew exactly when Media Matters would stop rallying against them. Mind you, this is a man who claims to hate Israel. He obviously creates political melodrama for his own financial gain. It seems like Soros is getting what he wants from the decline of our currency.
He has a friend named Jim Rogers who used to work with him at Quantum Funds. Jim Rogers endorsed Ron Paul during the 08 campaign. Ron Paul supporters have been shilling gold since the 08 campaigns, if not before.
One can say that BRIC intentionally pushed the US down. Soros has his filthy hands in Brazil and his Open Society Institute all over Russia and Eastern Europe.
But lest, one man couldn't do it all by himself.
A weaker dollar promotes exports, and the WTO hasn't been too great about enforcing trade war laws on China. Lets not forget to mention the illegal immigration and drug wars that send many billions of US Dollars out of circulation in our economy.
It's Papa's Feeding Time, but Pappa couldn't do with without the corruption in the previous two administrations and utter incompetancy and garbage that is our Congress.
We have to fix this. We have to vote out every crook in our government or have them forced out. This problem was created within.